Harley-Davidson moving some production overseas after retaliatory tariffs

Logo of U.S. motorcycle company Harley Davidson

However, Harley-Davidson has warned consistently against tariffs, saying they would hurt sales.

Aram... The Trump administration's duties on European goods led to these retaliatory tariffs... and it seems to be backfiring on American companies...

Europe implemented tariffs on the imports of United States goods, including motorbikes and bourbon, in response to Donald Trump's tariffs on steel and aluminium.

Mr Trump was particularly heartbroken over Harley-Davidson because he held it up as an example of a firm he could help by bringing down trade barriers. Besides its United States plants, Harley-Davidson maintains manufacturing facilities in Australia, Brazil, India and Thailand, according to its website.

Later that day Trump said the company was waving the "white flag" and surrendering after he had praised the company numerous times and invited its executives to the White House.

President Trump's trade war has started to bite American businesses in earnest.

In 2017, Harley sold almost 40,000 new motorcycles in Europe, which accounted for more than 16 per cent of the company's sales a year ago.

In the case of Europe, the president has blasted trade imbalances with European Union nations such as Germany. Now he is expected to restrict technologies sold to China, and Chinese investment in USA companies.

"To address the substantial cost of this tariff burden long-term, Harley-Davidson will be implementing a plan to shift production of motorcycles for European Union destinations from the U.S.to its global facilities to avoid the tariff burden".

In the filing, Harley Davidson says they made a decision to move production because the cost increase "would have an immediate and lasting detrimental impact to its business in the region". So, since Harley will have a seriously hard time absorbing that cost in its second biggest world market, company bigwigs chose to increase production overseas.

"In the near-term, the company will bear the significant impact resulting from these tariffs, and it estimates the incremental cost for the remainder of 2018 to be approximately $30 to $45m", it continued.

More news: Japan vs Senegal: Mane needs to improve, says Coach Cisse

Mid-Continent Nail of Poplar Bluff, Missouri, the largest US nail manufacturer, cut 60 jobs on June 15 and plans to lay off an additional 200 workers in a few days, citing plummeting sales following the imposition of Trump's tariffs on metals. It wasn't immediately known whether any other facilities would be consolidated.

The International Association of Machinists and Aerospace Workers (IAM), the union that represents Harley employees in three USA plants, said the offshore move had been planned long in advance.

Harley-Davidson announced its intentions in regulatory filings posted to the company's website on Monday, June 25.

Those jobs won't be moving overseas. Martinez added. "Does Harley even understand what "Made in America" means?"

Harley's announcement came as administration officials struggled to present a united front on another element of Trump's trade policy, new measures created to curb China's ability to access American technology by investing in American companies.

Trump has regularly pointed to Harley-Davidson as an example of a USA business harmed by trade barriers. "The company has already cut 60 employees from its workforce of 500, and it will likely soon lay off 200 more".

The EU's retaliation to Trump's steel and aluminum levies will cost about US$2200 per motorcycle shipped to Harley's second-biggest market in the world, the company estimated in a filing on Monday. In a piece by the Washington Post, the Mid-Continental nail, one of the country's largest manufacturers of nails, say they will be laying off approximately 60 employees as a direct result of the European Union tariffs set forth by the Trump administration.

The company is not raising bike prices for customers or retailers.

Wisconsin's elected leaders said the decision pointed to the need to expand markets.

"This is further proof of the harm from unilateral tariffs", a spokesperson for Ryan said in a statement.

Fellow Republican Gov. Scott Walker is echoing those comments.

Related News:

Most liked

Zsa Zsa the English bulldog wins Ugliest Dog contest
The dog's owner, Megan Brainard , found the dog through a pet-finding site and she has now won $1,500 for Zsa Zsa's win. Some of this year's contestants had hairless bodies, others had lolling tongues.

Saudi Arabia could see potential $10bn windfall from MSCI upgrade
Other sectors including utilities, insurance, retail and real estate account for the remainder", Merrill Lynch said. Saudi authorities say they plan to sell up to five percent of oil giant Aramco within the next 12 months.

Magnificent Musa gives Nigeria victory over Iceland
June 19-24, 2018 - The FIFA World Cup takes place in Russian Federation , with 32 teams competing to be crowned World Champions. Musa kept a calm head, rounded the Halldorsson, then took his time before slamming the ball into the net at the Volgograd Arena.

Photo showing Melania Trump in 'don't care' jacket is real
However, Melania was not wearing the jacket when she landed in McAllen, Texas. She posted: "Today's visit w the children in Texas impacted @flotus greatly".

Supporters of Trump steadfast despite immigration uproar
Elizabeth Warren plans to visit the border on Sunday, and Booker is planning a separate trip at roughly the same time. Unlike in the past, adults will not be turned over to the Justice Department when they face criminal charges.

World Cup match report Serbia v Switzerland 22 June 2018
The result moves Switzerland to four points in World Cup Group E, level with Brazil, while Serbia are one point behind. His family, like Shaqiri's, hail from Kosovo, whose independence is not recognised by Serbia for historic reasons.

Trump threatens additional tariffs on $200 billion of Chinese goods
American semiconductor makers saw larger losses at 2 percent or more due to their high exposure in China, according to CNBC . But, he said, "the United States will no longer be taken advantage of on trade by China and other countries in the world".

Lewandowski on girl with Down syndrome: 'Wah wah'
Petkanas responded. "How dare you!" "I don't know about you, but I have been losing sleep over what is happening at the border". The children were then sent to a detention center in McAllen, Texas, while their mother was sent to Brownsville, an hour away.

Why Melania Trump's jacket has sparked outrage
Over 2,300 children have been taken away from their parents at the Southern border since mid-May and placed into facilities. Trump said she wanted to learn more about how these children can be reunited with their parents "as quickly as possible".

How will online sales tax ruling affect consumers?
Heitkamp suggested that states follow South Dakota's lead and enact laws tailored not to target small businesses. If a business had a physical address in a state, it's required to charge sales tax for all orders in that state.

OPEC braces for tough Vienna talks on hiking oil output
After yearlong rise in oil and gasoline price, there's a call to control Oil price from rising too far and too fast. For one, the confrontationist attitude shown by the United States government has rattled world currency markets.

Dwight Howard Traded To Brooklyn Nets
By contrast, Howard has averaged 17.4 points, 12.7 rebound and two blocks per game since joining the league in 2004. But he wore out his welcome after one season and was dealt to Charlotte.

Prince Louis' christening to be held at Chapel Royal on July 9
Since his birth, Louis has not been seen in public although his family did issue official photographs of the new royal last month. Prince Louis will be christened by the Archbishop of Canterbury, Justin Welby, on Monday 9 July, Kensington Palace has announced.

Japanese World Cup Fans Clean Up The Stadium After Winning Against Colombia
Cisse however agrees that after five defeats in the six games featuring African teams, the hunt for glory could take some time . It is a habit drilled into citizens from a young age, with students expected to clean their school classrooms and hallways.

Disney ups Twenty-First Century Fox to more than $70.3 billion
For all the certainty Iger projects, many observers believe the Disney-Fox-Comcast intrigue is in early innings. That offer is now valued at $52.6 billion based on the latest number of outstanding shares provided by Fox.